Beverly Works for a Large Publicly Traded Company and Regularly

question 10

Multiple Choice

Beverly works for a large publicly traded company and regularly receives incentive stock options as bonuses.In 2014,Beverly exercises options to purchase 1,000 shares at $48 per share when the market value is $72 per share.What is Beverly's AMT adjustment from the exercise of the options?

• A) $24,000.
• B) $48,000.
• C) $72,000.
• D) None of these.

---

Definitions:

Internal Recruiting

The practice of filling job vacancies within a company using existing employees rather than hiring externally.

Higher-level Positions

Job roles that encompass more responsibility, authority, and usually offer higher pay, often accompanied by managerial or executive duties.

Homesourcing

A business practice where employees work from their homes instead of the traditional office setting, also known as telecommuting.

On-the-job Training

A hands-on method of teaching the skills, knowledge, and competencies needed for employees to perform a specific job within the workplace.